ChainCatcher news, Paxful co-founder Ray Youssef assured creditors that the platform is under the supervision of a custodian and that he will not "run away" with the money because doing so would "ruin his reputation." It is reported that Paxful announced that it would cease operations two weeks ago, and it is uncertain whether the platform will reopen.
Ray Youssef will step down as CEO of Paxful on April 18, according to a tweet he posted. The company currently has a Delaware law firm as a custodian that controls all funding and operations of the platform.
Ray Youssef pointed out that Paxful still has $4.4 million in frozen funds, accounting for approximately 3.3% of all customer funds that cannot be withdrawn. But as one of his "last actions as CEO," Youssef also revealed that after 10 days of efforts, 88% of the frozen accounts had been unfrozen. "In order to unfreeze these accounts, I gave up my title as CEO and I risked being found in contempt of court."
He advocates self-hosting for all crypto users. He said he had "no authority" to unfreeze the remaining 12% of accounts that were still locked. "I'm sorry if your account is still frozen, but I do not have the authority to unfreeze these funds, they are in the hands of US regulators. I have no authority and have never had authority to access client funds. Avoid US companies and always self-custody! ” (source link)
